Nanofilm Technologies - CGSI Research 2024-02-27: FY23 Net Profit Fell 92.8% Y-o-y

• NanoFilm Technologies (SGX:MZH) reported a 92.8% y-o-y decline in net profit to S$3.1m in FY23. This was better than our expectation of a net loss of S$0.7m (as our operating expenses assumption was higher), but 60.4% below Bloomberg consensus’ S$7.9m net profit forecast (which assumed better margin).

FY23 net profit dipped as excess inventory pared customer demand

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• a slower pace of cost optimisation.
• A final dividend of 0.33 cents was declared.

Management hopeful for improvement in FY24F

• In its FY23 results release, NanoFilm's management guided that barring unforeseen circumstances, it expects FY24F financial performance to improve over FY23 as customer’s deplete their inventories and launch new products in 2H24F, which would drive demand for its coating services.
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Mixed outlook for its BUs

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William TNG CFA CGS International Research | https://itrade.cgsi.com.sg 2024-02-27 SGinvestors.io

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